The commissioner of education declined to renew the charter of an open-enrollment charter after the school stopped operating for several years. The reasons for the denial were that the school had failed to maintain its nonprofit status, failed to file annual audit reports for three years, received four consecutive academically unacceptable ratings, and failed to file a dormancy amendment with TEA after it stopped operating. The operator of the charter school requested a hearing regarding the denial of its charter and a hearing was held at the State Office of Administrative Hearings (SOAH).

At the hearing, the charter school operator did not deny that it had ceased operating. Instead, it argued that a mitigating factor existed because it believed that it had not received sufficient funds from the state and that this should excuse its noncompliance. After the hearing, SOAH concluded that the commissioner was required to deny the renewal of the charter and recommended that the decision to do so be upheld. The operator of the charter school appealed to district court and then to the court of appeals.

The court of appeals concluded that the charter school did not have the right to appeal the SOAH decision. The law specifically states that when a charter school’s charter is not renewed, the charter may appeal to SOAH, but the SOAH decision is final and may not be appealed. The denial of the charter was upheld.